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VSTS: Risk Profile Will Improve As Guidance Stays Muted And Multiples Expand

Workplace Hygiene And Digital Scaling Will Revitalize Uniform Services

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VSTS
AnalystHighTarget
Not Invested
Published 01 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 1.74%
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AnalystHighTarget's Fair Value
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1Y
-55.7%
7D
-2.9%

Analysts have modestly raised their price target on Vestis to approximately $8.00 per share, reflecting a lower perceived risk profile and higher future valuation multiples, despite tempered expectations for revenue growth and profit margins.

What's in the News

  • Vestis issued new fiscal 2026 guidance, projecting revenue to be flat to down 2 percent compared with normalized fiscal 2025 levels (Key Developments).

Valuation Changes

  • The Fair Value Estimate has increased slightly from $7.86 to $8.00 per share, indicating a modest upward revision in intrinsic valuation.
  • The Discount Rate has declined marginally from 9.50 percent to about 9.31 percent, reflecting a slightly lower perceived risk profile.
  • The Revenue Growth Assumption has fallen significantly from roughly 2.17 percent to about 0.87 percent, signaling more cautious expectations for top line expansion.
  • The Net Profit Margin Assumption has been reduced materially from about 2.51 percent to roughly 0.98 percent, implying a more conservative view on profitability.
  • The Future P/E Multiple has risen sharply from about 18.6x to roughly 50.2x, suggesting a substantially higher expected valuation multiple despite lower growth and margin assumptions.

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Disclaimer

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